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Are you charged more for the same position because of high max cpc?

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# 1
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Let us say I have two keywords I am targeting in a certain area.

 

Lets say I currently bid £1 for two keywords, "Leather Sofa" and "Leather Suite".

 

Lets say I have an average position of 4 for Sofa, and average position of 2 for Suite.

I want all the maximum traffic I can get from this area so I will be increasing my Max CPC bids.

 

Lets say to put the more expensive keyword at the top I have to bid £2.50 but Suite only requires a bid of £1.75.

 

However, I am prepared to pay £2.50 for either word as they both convert the same for me (as I am using negative lists to filter out the other meanings)

 

Will it hurt me to put a bid of £2.50 on suite as well? I have a feeling from the past that when I do that, Google will end up charging me roughly my Max CPC and I could get away with the same result by bidding £1.75.

 

So basically, does Google keep its word that they never charge you more then they need to? Am I wrong by thinking when you bid more for something you are charged more just because?

 

 

 

2 Expert replyverified_user

Re: Are you charged more for the same position because of high max cpc

Top Contributor
# 2
Top Contributor
Hi, Zevi.

Google charges you (The Ad Rank of the advertiser below you) / Your Quality Score + 0.01. Once you have an ad rank which is high enough to put you in position #1 (top position may mean 1, 2 or 3), you can raise your bids as much as you want and you'll still pay the same.

If, however, by bidding more you raise from #3 to #2 or #1 then indeed you may pay more, because the ad rank of the advertiser below you is higher.
Calin Sandici, AdWords Top Contributor | Find me on: Google+ | Twitter | LinkedIn | myBlog
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Re: Are you charged more for the same position because of high max cpc

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# 3
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Hi AdWiser, you made me think of something.

If these are BMM, then can that make a difference even if I though I was in position 1?
Because there may be other variants that will cost more and now google is capturing those at a higher position?
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Accepted by topic author Zevi S
September 2015

Re: Are you charged more for the same position because of high max cpc

Top Contributor
# 4
Top Contributor

Regardless of match type, the auction mechanism is exactly the same.

 

However, each auction and each click is different, because competition may vary, the search term varies, etc.

 

So if you raise your bid for such a keyword you may, indeed, start qualifying for auctions involving new search terms, maybe less related to your keywords, which might cost more than the previous clicks, for other search terms, did.

 

You may want to look at search terms as well, not just keywords, as they may reveal the variations in costs and position, for the same keyword.

Calin Sandici, AdWords Top Contributor | Find me on: Google+ | Twitter | LinkedIn | myBlog
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Re: Are you charged more for the same position because of high max cpc

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# 5
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Thanks a lot for clarifying!

Great help!

Re: Are you charged more for the same position because of high max cpc

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# 6
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No problem, Zevi. Best of luck!

Calin Sandici, AdWords Top Contributor | Find me on: Google+ | Twitter | LinkedIn | myBlog
Was my response helpful? If yes, please mark it as the ‘Best Answer.’ Learn how here.

Re: Are you charged more for the same position because of high max cpc

Top Contributor
# 7
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There is also something else to consider. A lot of people simply want to be number 1 in the results and so bid aggressively to get the top positions. So you are often going to pay a lot more for the #1 position than, say, #4.

Depending upon your profit margins (and if you are talking leather sofas, these are big ticket items with good margins, I imagine, so this may not be the case) then you might find that your return on investment is better in position 4 than in position 1. Something to keep an eye on.

Re: Are you charged more for the same position because of high max cpc

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# 8
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Right, I was referring to when I already was on position 1 for the BMM keyword.

But yeah, it definitely is nice being on top with big profit margins!

Re: Are you charged more for the same position because of high max cpc

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# 9
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Zevi,
I would suggest you for save your money you try to maintain position #2 in top slot. Because the most bid difference always came in position 1& 2 and according to that google charged your Avg. cpc. when you maintain position #2 then Max cpc of position 2 & 3 less difference as compare to position 1 & 2. So that time you need to pay less as compare to position #1.